Chinese acetylene based PVC producer raises export prices
The producer’s export offers for PVC k67-68 currently stand at $940/ton on an FOB China, cash basis while their offers are at $945-950/ton CIF Southeast Asia, cash.
Meanwhile, the producer’s local offers are also up by CNY800/ton ($119/ton) and are now reported at CNY7100-7200/ton ($902-915/ton without VAT) on ex-warehouse China, cash including VAT basis.
A producer source reported that they want to sell their material to both local and overseas markets. However, the gap between these markets is quite significant. He stated, “The local market is doing well due to a few reasons. First, new transportation regulations allow a maximum of 32 tons to be carried by a truck which was previously 40 tons and this causes tight supply since we need to order more trucks to deliver material and there is not enough trucks. Secondly, there is PVC plant maintenance in October. We heard that Tianye is undergoing maintenance. Thirdly, government groups continue inspections regarding coal production, which also causes supply to be tight.” He added that overseas response is weak while the local market is not bad and that they want to maximize their operating rate but the transportation problem prevents them from doing so.
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